Appreciation refers to an increase in the value of an asset over time, which can result from various factors such as inflation, a rise in market price, or interest earned. This term is essential for understanding the financial dynamics related to assets and currency values.
Describing a call or put option in which the exercise price is the same (or very nearly the same) as the current market price of the underlying asset.
An investor who seeks to purchase securities, commodities, or other assets that are at their lowest market prices and are expected to rise in value.
In securities trading, a buy order is an instruction to a broker to purchase a specified quantity of a security at the market price or another stipulated price.
In financial terms, a call premium is either the amount paid by the buyer of a call option above the stock's or index’s current market price, or the additional amount over par that an issuer of bonds or preferred stock pays to redeem the security early.
Closed-End Mutual Funds are investment companies that operate with a limited number of shares outstanding. Unlike open-end mutual funds, which create new shares to meet investor demand, closed-end funds have a fixed number at inception.
Compensatory stock options are financial instruments provided to employees as partial compensation for their services, commonly used by firms to align employee interests with those of shareholders.
The price that consumers are willing to pay in the market for a given quantity of output. It is derived from the demand schedule or demand curve.
A market condition characterized by significant shifts in demand or supply, resulting in market prices that have not adjusted sufficiently to clear the market. Disequilibrium features excess demand or supply and arises from changing factors affecting demand and supply.
The net realizable value of an asset, representing its market price at the balance sheet date, less the selling expenses.
A form of accounting in which assets are measured at their current market price, recognizing all changes in value within the profit and loss account, differing from traditional historical-cost accounting by recording unrealized gains.
Free goods are items that are naturally abundant and available to satisfy demand without requiring rationing or a market price, such as sunshine. They are contrasted with economic goods.
The grey market comprises markets for legal trading of goods that are in short supply or shares that are not yet issued but will be issued shortly, offering price anticipation and the potential for losses if allocations do not match expectations.
The issue price, also known as the offering price, is the price at which a new issue of shares is sold to the public. The market price of the securities may vary post-issuance, trading at a premium or a discount to the issue price.
A marginal producer in an industry is an individual producer who remains barely profitable at current levels of price and production.
Market price refers to the prevailing price of a product, service, security, or raw material in an open and competitive market. This term is crucial in formal markets such as stock exchanges or commodity markets.
The Market-to-Book Ratio (M/B ratio) is a financial valuation metric used to compare a company's current market price to its book value, providing insights into how the market values the firm's assets.
The negotiated market price is a price that is set by negotiation between producers and the government, usually due to wartime restrictions, unexpected shortages, or natural monopoly situations.
The normal price refers to the price level that goods or services typically command in a market over the long term. It is a stable price expectation absent extraordinary market fluctuations like sudden shortages or surpluses.
An open-end management company is an investment company that sells mutual funds to the public and continually creates new shares on demand.
A stock is considered overvalued when its current market price does not seem justified based on its earnings and growth potential, suggesting that it is likely to decrease in price.
In finance, a point has different implications depending on whether it is used in relation to bonds, real estate, commercial lending, or stocks. Understanding these distinctions is crucial for comprehending various financial metrics and transactions.
The Price-Dividend Ratio (PDR), also known as the Price/Dividend (P/D) ratio, is the current market price of a company's share divided by the dividend per share for the previous year. It measures the investment value of the share.
Understanding the different methodologies for setting selling prices for products and services supplied by an organization.
The amount of a good or service that will be brought to market at a given price. The schedule of quantities supplied at each market price defines the Aggregate Supply Curve.
Redemption yield, also known as yield to maturity, is a measure of the annual return an investor can expect to earn if a bond is held until maturity. It factors in both the bond's current market price and its interest payments.
Running yield, often referred to simply as yield, is a financial metric used to measure the annual income generated by an investment relative to its current market price.
The spot rate is the current market price at which a particular currency can be bought or sold for immediate delivery, typically within two business days.
Stated value is an assigned value given to a corporation's stock for accounting purposes in lieu of par value.
A stop order is a directive given to a securities broker to buy or sell a security at the market price once the specific stop price has been reached. This type of order is primarily used to protect profits and limit losses.
Street price refers to the average or usual price charged for a product, particularly when it is rarely sold at the manufacturer's suggested retail price (MSRP). It frequently appears in consumer electronics reviews, especially for products like personal computers and peripherals.
Unitary elasticity refers to a situation in economics where a change in the market price of a good results in no change in the total amount spent for the good within the market.
A write-down is a reduction in the book value of an asset on a company's financial statements, typically due to a decline in the asset's market value. This accounting procedure adjusts the carrying value of an asset to reflect its current estimated recoverable amount.
Yield is a measure of the income generated from an investment over a particular period, expressed as a percentage of the investment's cost or current market value. This concept applies variably to fixed-interest securities and equities.
